Deforestation Regulation

As part of the European Green Deal and the 2030 EU Biodiversity Strategy, the European Commission adopted on 16 May, 2023, a new regulation to curb EU-driven deforestation and forest degradation. It is due to come into force in December 2026 for large companies and in June 2027 for small-medium companies. The regulation sets rules for companies and traders producing products for the EU (or for export from the EU) linked to the commodities of soy, beef, palm oil, wood, cocoa, coffee, and rubber and specific derived products.

• The regulation on deforestation-free products requires operators and traders within the European Union market, who engage in the sale or export of goods including soy, beef, palm oil, wood, cocoa, coffee, rubber, as well as specific derived products like leather, chocolate, and furniture, to provide evidence that their products are sourced from regions free from recent deforestation or any involvement in forest degradation.
• The scope of the regulation for leather covers raw material, part processed, and finished leather, but not finished products containing leather.

• To access the regulation, please click here

• On 4th May, 2026, the Commission published a simplification package that is open for public consultation until 1st June 2026. It includes a proposal to remove leather from the scope of EUDR

  “Hides, skins and leather are derived products from cattle. Considering the differentiation of the leather downstream value chain from the meat value chain, asymmetries in trade flows between meat and hides, and the relatively low economic value of cattle skins and hides compared to meat within the overall cattle production, economic operators in the Union have limited leverage to demand the information necessary to comply with Regulation (EU) 2023/1115 from their suppliers. In addition, the exclusion of downstream leather products from the scope of Regulation (EU) 2023/1115 creates a fragmented and incoherent approach for the leather sector and for operators placing the relevant goods on the Union market and may result in the relocation rather than the elimination of the deforestation risk. For those reasons, HS Codes ‘ex 4101 Raw hides and skins of cattle (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared) whether or not dehaired or split’, ‘ex 4104 Tanned or crust hides and skins of cattle, without hair on, whether or not split, but not further prepared’, and ‘ex 4107 Leather of cattle, further prepared after tanning or crusting, including parchment-dressed leather, without hair on, whether or not split, other than leather of heading 4114’, should be
  deleted from Annex I to Regulation (EU) 2023/1115.”

  Read more here

• The UK ran a second consultation on how to implement due diligence on forest risk commodities.

• To access the consultation documents and view a summary of this process, please refer to the following link here

• The USA has a proposed bipartisan bill the Fostering Overseas Rules of Law and Environmentally Sound Trade (FOREST) Act aimed at reducing illegal deforestation. 

• For further information, please refer to the following link here